>> you got it, my man! let's bet dinner. >> team trace. >> i love trace adkins. >> i don't care. >> that's it for "the five." thanks for watching. "special report" is next. >> bret: political corruption, arrogance, or simply imcompetence? the obama administration and the irs scandal. this is "special report". >> bret: good evening. i'm bret baier. what has easily been the longest week of barak obama's presidency ended up with a focus today on a subject every american can relate to, taxes. the question of whether the white house had anything to do with the irs targeting conservative groups for special scrutiny. we have fox team coverage tonight with all the obama scandals. wendell goler with the story of an irs official's new job coming after more of your money over

obamacare. we begin with chief congressional correspondent and the man in the hot seat on capitol hill. good evening. >> good evening. after a week of intense heat on the irs, today the agency did not back down insisting there was not a bias against conservatives. >> i resigned because as the acting commissioner, what happens in the irs, whether i was personally involved or not, stops at my desk. so i should be held accountable for what happens. >> the outgoing acting commissioner explained his upcoming departure days after a report blasted the irs for ineffective management. >> was the irs using inappropriate criteria in its review of organizations applying for tax exempt status? yes. was the irs delaying their applications? yes. and finally, did the irs ask inappropriate and unnecessary questions of applicants? again, yes.

>> the inspector general says he told treasury officials last june he was investigating allegations the irs had targeted conservative groups. >> i subsequently alerted the general counsel of the department of the treasury on june 4 and subsequently, and i do not have the exact date -- alerted the deputy secretary, neil woolen, about this. >> this said the obama administration was aware of the complaints ahead of the election. one example, katherine who says when she filed for nonprofit status for king street patriots, the f.b.i. domestic terrorism unit got involved and her business and personal returns were audited. committee chairman dave camp expressed the frustration of many lawmakers with the irs and offered this assessment. the irs never told the american people or representatives about this simple truth. in fact, we were repeatedly told no such targeting was happening. that is being misled.

that's lying. >> a veteran democrat blasted miller. >> well, regardless of whether democrats or republicans did something like this, the outrage should still be there. is that not correct? >> the outrage as to -- >> the abuse. >> yes. >> with the speaker of the house saying somebody could go to jail with this activity, miller said he didn't think extra scrutiny broke the law. >> do you believe it is illegal for employees of the irs to create lists to target individual groups and citizens in this country? >> i think the treasury inspector general indicated it might not be. but others will be able to tell that. >> what do you believe? >> i don't believe it is. >> one republican member received applause after accusation the irs of opening a pandora's box. >> this is very chilling for the american people. this is absolutely an overreach and this is an outrage for all america. i yield back. [ applause ]

>> today the president met with daniel werfel. he also met with treasury secretary jack lew ho who we're told told werfel to conduct a thorough review of the irs. next tuesday the outgoing irs commissioner in the inspector general will testify before the senate finance committee. fox news learned a third witness will join them, forger irs commissioner douglas shulman, as lawmakers try to get to the bottom of this irs matter. bret? >> bret: mike, thank you. the official who led the unit that targeted conservatives now has another job. it has the potential to impact the lives of virtually everyone watching this program. wendell goler on the amazing career path of one washington bureaucrat. >> it's a collision of the president's signature achievement and what may be his administration's biggest scandal. sarah hall ingram, who once ran the irs division, accused of targeting tea party tax exempt requests for extra scrutiny, now heads the irs office implementing obamacare, making

sure working people purchase health insurance and providing subsidies for those who can't afford it. republicans were outraged. >> so she provided horrendous customer service under her watch, and now she's going to do the same implementing obamacare. swell. >> the outgoing irs commissioner, who has insisted the targeting was not politically motivated, defended the ingram appointment. >> because she's a superb civil servant. >> she had nothing to do with th't imagine so. >> rick: congressional democrats say ingram actually began her job on the affordable care act six months before her subordinate learned of the tea party issues. lawmakers had new ammunition to use. >> our worst fears have come to roost, that the irs will be entrusted with your health care records, health history, your family history. >> democrats aim to show the irs would not have medical information. >> their job is simply to

collect paid financial information on which a determination is made to whether somebody can get a subsidy for their premium. >> q and a session, president obama acknowledged the need for trust in the irs. >> we've got to make sure that it is doing its job scrupulously and without even a hint of bias or a hint that somehow they're favoring one group over another. >> but conservatives say the affordable care act gives new responsibilities to an agency many americans already mistrust. >> every company will have to report in different ways to the irs and every individual is part of their tax return will have to report the status of their tax care. -- their health care. >> the white house likes to say that house republicans are wasting their time by trying to repeal obamacare. but this connection to the irs

scandal all but guarantees there will be other attempts to alter it. bret? >> bret: wendell goler, thank you. jim angle pointing that out in a piece yesterday. the house version of the senate's gang of eight has come up with its own addition of immigration reform. the plan reportedly will be tougher on illegal immigrants have and have a longer path to citizenship than the senate measure. but both put illegal immigrants who are in the military or brought here as children on a quicker track. the congressional budget office says president obama's latest spending plan would increase the deficit for this fiscal year by $29 billion and for fiscal year 2014, by $115 billion. that's compared to the most recent estimates based on current law. the cbo says the obama plan would decrease the cumulative deficit over the next ten years by $1.1 trillion. environmental groups say proposed new rules for drilling on public land are a total

capitulation to the energy industry. the obama administration has announced new guidelines for reporting chemical use in fracking which also uses water and sand to extract greater amounts of natural gas. industry advocates say the federal rules are unnecessary since state rules are already in place. while the focus here at home has been on the obama scandals, there are ominous signals coming out of the middle east. c.i.a. chief john brennan made a quick trip to israel today to try to help keep an already unstable region, regional situation, rather, from getting worse. according to wednesday officials, russia is not helping. apparently ignoring u.s. pleas to stay out of the syria conflict. chief national correspondent jim angle has the specifics tonight. >> there are new and implicating developments on syria today as russia sent advance cruise missiles to support the assad government, which brought harsh words from the pentagon. >> it's at the very least an unfortunate decision that will embolden the regime and prolong

the suffering. so it's ill timed and unnorth nate. >> general definitely made it very clear that on the specific areas of the missiles, whatever else is involved with the russians does not help. it makes it more dangerous. >> at issue are new more sophisticated antiship cruise missiles with a longer range that the russians are supplying to syria, which general dempsey fears will give assad a false sense of security. >> what i really worry about is that assad will decide that since he's got these systems, he somehow is safer and more prone to a miscalculation. >> oddly enough, just an hour earlier in the face of repeated questions, state department spokeswoman flatly denied any knowledge of russia's supplying new weapons to syria. >> we're not aware of new shipments of these specific missiles. >> skeptical reporters kept going. she said they were year old reports which conflicts with the

pentagon. for his part, the russian foreign minister didn't try to deny it. >> i don't understand why the media are trying to make this look like a sensation. we have never hidden the fact that we are supplying syria with arms. >> reports also indicate they supplied warships off the coast of syria and obvious attempt to show support for the assad government. the state department is trying to push an international conference in mid june in search of a negotiated solution to the rebellion which has killed more than 80,000 people. the u.s. wants russia to be a part of that. >> we have continued to work with the russians in planning the international conference and in working to get both sides back to the table to work toward a political transition. >> now iran wants to attend. that was flatly rejected by the french today, saying what is at stake is regional stability and we can't see how a country that represents a threat to stability could attend this conference. bret. >> bret: just to be clear, the

defense department, defense secretary, chairman of the joint chiefs said that missiles going to syria from russia is a big problem. state department said, it's a year old story, you guys are off the track here. >> we don't know anything about it, they said. >> bret: thank you. what do you think will happen in syria? let me know on twitter. no matter what it says, the irs is not playing ball with republicans and we can prove it. that's later in the grapevine. up next, this sounds familiar, the gap in key white house scandal evidence [ man ] on december 17, 1903,

the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪

of mild to moderate alzheimer's disease is exelon patch. now with more treatment options, exelon patch may improve overall function and cognition. your loved one can get a free 30-day trial. and you can have access to nurses. it does not change how the disease progresses. hospitalization, and rarely death, have been reported from wearing more than one patch at a time. the most common side effects are nausea, vomiting, diarrhea,

fall, loss of appetite or weight, application site redness, and urinary tract infection. the likelihood and severity of these side effects may increase as the dose increases or if patients weigh less than 110 pounds. people at risk for stomach ulcers who take certain other medicines should talk to their doctor as serious stomach problems such as bleeding may worsen. patients may experience slow heart rate. free trial offer for them. nurses to talk to for you. visit exelonpatchoffer.com. ♪ >> bret: president obama has bristled at comparisons between his current scandals and watergate. but now the benghazi case and the uproar over that third rate burglary have something in common. a gap. 18 minutes for watergate and much longer for libya. catherine herridge on what is missing from the white house

e-mails, who is missing so far from the discussion. >> the house government oversight committee issued a subpoena to ambassador thomas pickering, the co-chair of the state department's internal review known as the arb. to appear on capitol hill next thursday for a deposition. cite ago failure to answer questions prior to a public hearing, darrell issa wrote, your refusal to allow staff investigators to interview is inconsistentents with your commitment to be tough and transparent. i hope you will reconsider. before the subpoena became public, a member of the oversight committee said it appears politics dictated security policy in benghazi. >> in the world of the state department normalize, means let's get rid of the trained troops and bring in locals. >> republicans are keying in on a significant gap between the attack on 9-11 and the first e-mails released by the white house this week on the talking points. the e-mail trail runs from september 14 through september 15, one day before ambassador susan rice portrayed the attack as spontaneous and

not terrorism. speaker of the house john boehner is urging the administration to be completely transparent and reveal all communications in the hours immediately after the attack. >> our job here is to get to the truth and we're going to get to the truth. >> on september 12, a cable from the top officer in libya based on eyewitness accounts, reported islamic extremists were involved. on september 13, the f.b.i. and the nctc, the hub for threat collection and analysis, briefed that al-shariah was involved. no mention of a video. on september 14, lawmakers tell fox they were surprised when then c.i.a. director david petraeus briefed on the hill and seemed to put the emphasis on the video. that same day the e-mail trail on a talking points begins. the state department spokeswoman seemed to choose her words carefully when she said there is nothing left to share. >> the e-mails have been released, all of the e-mails, as i understand it. >> leading house republican is calling for the release of video that captured the attack. >> most of what took place in

the attack itself was actually on film. unless we do this thing on a select committee quickly, i fear weigh may never find out. >> two-thirds of republicans in the house support select committee, which will require the leadership to sign off and the democrats to buy in, bret. >> bret: okay. catherine herridge at the state department. thank you. the obama justice department is under fire for the seizure of phone records of dozens of reporters for the associated press. the administration insists it was for a good cause, to plug a national security leak. critics say it was a blatant trampling of the first amendment and point out the ap was cooperating at the time and given the green light on the story they eventually printed. chief political correspondent carl cameron looks at where we go from here. >> while some lawmakers are demand ago special counsel to independently investigate the seizure of the phone records, others want aggressive, public congressional inquiry. >> this culture of intimidation, hard ball pop ticks we can not

stand for this. and i hope we will be united in condemning this and insuring we get to the bottom of this. significant investigations and hearings. >> in his refusal to apologize yesterday for the justice department's action, mr. obama expressed openness to a, quote, conversation about laws protecting reporters and their source. when leaks threatened national security, there are different priorities. >> i've still got 60,000 plus troops in afghanistan and i've still got a whole bunch of intelligence officers around the world who are in risky situations. >> we're talking about 100 or more journalists whose private lives and professional lives were tapped into. this to me is inexcusable and trampling on the constitution. >> a form newspaper owner and tv and radio reporter has reintroduced the free flow of information act to protect journalists and their sources. it's a bill with an ironic mother. >> then senator barak obama supported it until he didn't support it in 2009, which has

been the case with president obama. he gets into the executive branch, into the white house and suddenly becomes a much more less transparent and heavy handed executive branch and this department of justice example exemplifies everything about them. >> chuck schumer revived his long shelfed national shield bill require ago court order before press records are seized. but it contains an exception for national security matters and might not have prevented what happened to the associated press. the house version unites conservative republicans with liberal democrat from california and colorado. the legislations call the telephone records protection act. some of the records justice seized -r7 from phones in the capitol, the legislative branch. not only did the executive branch not notify the associated press about the seizure, lawmakers weren't told that some of their records may have been scooped up, too. so there is real motivation in congress to rein this in. >> bret: thank you. still ahead, fighting for your

country while fighting off central predators. first, robbing peter to pay paul, the florida food stamp conundrum why are twice as many people choosing verizon over any other carrier? many choose us because we have the largest 4glte network. others, because of our reputation for reliability. or maybe it's because we've received jd power and associates' customer service award 4x in a row. in the end, there are countless reasons. but one choi. icaused by acid reflux disease, relieving heartburn, relief is at hand. for many, nexium provides 24-hour heartburn relief and may be available for just $18 a month. there is risk of bone fracture and low magnesium levels. side effects may include headache, abdominal pain, and diarrhea. if you have persistent diarrhea, contact your doctor right away. other serious stomach conditions may exist.

don't take nexium if you take clopidogrel. relief is at hand for just $18 a month. talk to your doctor about nexium.

>> bret: conflict makes for a good story telling. we have a big one for you tonight. it's in florida and it concerns the state's food stamp program. here is steve harrigan. >> charles and virginia hicks never thought about applying for food stamps until today. >> we never haveapplied. >> no. >> well, good, i'm glad you're going to do it today. >> it's her job to sign them off. the florida food bank employee crisscrosses four counties, looking people who are eligible but not receiving the snap, supplemental nutrition assistance program.

the program brings $6 billion a year into the state's economy, but for some, it's explosive growth is a cause for concern. >> creates a bad incentive for state governments to try to get as many people on the program as they can because they know hey, it's the federal taxpayers' paying for it. >> just one third of florida seniors who qualify for food stamps takes them. the group is a prime target for recruiters like this. >> i think it's that older generation that feels that it's the pride and shame, all bottled up together. >> the hickses are still on the fence about food stamps. >> well, thank you, sweetheart. >> the retired bus driver and his wife of 37 years buy dented canned goods and dated bread. there is food in the refrigerator, but no insurance on a mobile home in a hurricane zone. right now there are 3.6 million people in florida on food stamps.

that's more than double the number of just five years ago. bret? >> bret: steve harrigan, thank you. another big day on wall street. the dow gained 121 today. the s & p 500 was up 17. the nasdaq finished ahead 34. for the week, the dow was up 1 1/2%. the s & p 500 added 2%. the nasdaq gained 1.7%. who needs wall street when you can win the lottery. tomorrow night's powerball jackpot has a lot of people heading to convenience stores this evening. it's that $600 million and counting. the cash value of the payout, the lump sum, if you choose that option, is around $380 million. that's before taxes. your odds of winning with a single ticket, about 175 million to one. the tax scandal comes down to a commencement speaker and the irs is definitely not playing ball with the senate republicans. taxing edition of the grapevine is next

even ragu users chose prego. prego?! but i've been buying ragu for years. [ thinking ] i wonderhat other questionable choices i've made? [ club scene music ] [ sigh of relief ] [ male announcer ] choose taste. choose prego. [ male announcer ] we all have something neatly tucked away in the back of our mind. a secret hope. that thing we've always wanted to do. it's not about having dreams, it's about reaching them. ♪ an ally for real possibilities. aarp. find tools and direction at aarp.org/possibilities.

all stations come over to mithis is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.

>> bret: now some fresh pickings 9 folking at western new england university school of law let out a sigh of relief, one would think, when one of the irs officials at the center of the tax scandal, lois lerner, canceled her appearance as the speaker for saturday's graduation ceremony. earlier this month, the school praised her work for transparency and ethics. meanwhile, the irs softball team

here in washington, the cheetahs, has canceled its scheduled game with the team from republican senator john cornyn's office. the cornyn spokes marne says, quote, guess they needed an extension. president obama was in baltimore proposalling jobs, but his choice of back drop may drown out his message. president obama stood in front of dredge's equipment. the president of that company, peter bow, testified just yesterday in a hearing on the keystone xl pipeline. he said federal delays on the pipeline are hurting his company. and costing jobs. we've told you about the reservations the family of president dwight d. eisenhower expressed regarding the development of a memorial in ike's honor along the national mall here in washington. congress has already appropriated $62 million to the commission which has picked a site and the design, but has not begun construction. now u.s. news and world report says the commission wants

another $51 million of taxpayer money. congressional republicans wonder why the commission needs $2 million in operating expenses for a nine-member staff. why it spent 220 grand in travel and conferences from 2009 to 2012, and much more. the commission tells fox news it will be responding to congress in coming weeks. when recruits sign up not just for a job, but an adventure, this isn't the kind they have in mind. what president obama calls the scourge of sexual assault in the u.s. military has catapulted to the top of public consciousness in the past several days. molly henneberg tonight on what's being done about it. >> defense secretary chuck hagel said today that he and other military leaders are, quote, disappointed, and embarrassed about the sex scandals dogging the military. he says anyone who was part of any sexual harassment prevention program in any military branch will be reviewed and retrained.

>> we've in many ways failed. but we all have committed to turn this around and we're going to fix the problem. >> this follows the arrest wednesday of 42-year-old lieutenant colonel darren haas, now the former head of the sexual assault response team at fort campbell. he's charged with stalking his ex-wife and violating a protection order. earlier this week, at fort hood, authorities started investigating an army sergeant for sexual assault and potentially setting up a prostitution ring. he was supposed sexual harassment coordinator. and last week, another who led the air force's sexual assault presentation office was arrested and charged with groping a woman. today the chairman of the joint chiefs said military justice cannot turn a blind eye even after a decade of war. >> if the perpetrator shows up at a court marshal and has four deployments and a purple heart, there is certainly the risk that

we might be a little too forgiving of that particular crime. >> on capitol hill, a bipartisan group of senators has introduced legislation that would require most sexual assault cases to be turned over to a military prosecutor and not run up the usual chain of command. bret? >> bret: thank you. salacious testimony in the trial of three former aides to form italian prime minister sylvio berlusconi. the woman at the center says his private disco featured aspiring show girls performing strip tease acts as sexy nuns and nurse, a prominent prosecutor and even president obama. the aides are accused of recruiting women for prostitution at what were called bungabunga parties. i talked with him at the opening of the george w. bush presidential center in texas. >> it was constructed against me by six witnesses against one and

30 people had talked about it. in italy, they know this. if not, i wouldn't have all these votes. >> bret: berlusconi has been charged with soliciting sex from a girl he is under investigation for bribery and other crimes. he just lost ameal of a tax fraud -- appeal of a tax fraud conviction. more with the all stars when we come back get any more tempting...

... you thought wrong. get up to 50% off hotels this memorial day with travelocity. that's a good thing,

but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, they pick up some of what medicare doesn't pay. and save you up to thousands of dollars in out-of-pocket costs. call today to request a free decision guide to help you better understand what medicare is all about. and which aarp medicare supplement plan works best for you. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks, and you'll never need a referral to see a specialist. there's a range of plans to choose from, too. and they all travel with you. anywhere in the country. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp,

an organization serving the needs of people 50 and over for generations... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. call today. remember, medicare supplement insurance helps cover some of what medicare doesn't pay -- expenses that could really add up. these kinds of plans could save you up to thousands in out-of-pocket costs... you'll be able choose any doctor who accepts medicare patients. and you never need referrals. so don't wait. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. this easy-to-understand guide will answer some of your questions, and help you find the aarp medicare supplement plan that's right for you.

>> i do not believe that partisanship motivated the people who engaged in the practices described in the treasury inspector general's report. i think that what happened here was that foolish mistakes were made by people trying to be more efficient in their workload selection. >> you knew of our concern of this targeting. you knew of the allegations that had been reported to this committee. we brought you here to talk about it. you had received a briefing that this targeting was taking place. but you did not divulge that to this committee when we were asking questions about this. you didn't mention targeting based on ideology. you didn't mention targeting based on buzz words like tea party or patriots or 9-12. you knew that but you didn't mention this to the committee. did you not think that's a very incomplete answer? >> i answered the question truthfully. >> bret: acting commissioner of the irs, steven miller, testifying on capitol hill on the hot seat today for a long time. some interesting back and forth today. this as the president met with

the incoming irs commissioner at the white house, dan werfel. he starts next wednesday in that position. the president, of course, saying he learned of all of this from the press. >> i first learned about it from the same news reports that i think most people learned about this. i think it was on friday. >> can you assure the american people that nobody in the white house knew about the agency's actions before your counsel's office found out on april 22? and when they did find out, do you think you should have learned about it before you learned about it from news reports, as you've said last friday? >> i can assure you that i certainly did not know anything about the i.g. report before the i.g. report had been leaked through press. >> bret: then last night his white house communication director, dan pheiffer, was on cnn saying the first time we were aware of this was when we heard a few weeks ago there was an active inspector general report into the irs. that was the first we heard.

we didn't know the details of it until they came out in the press late last week. he was asked, when you say a few weeks ago, was it three weeks, five weeks? like three weeks ago, i believe. the actual details we learned from the press and learned for the first time what happened when we got the inspector general report late yesterday. blitzer, as sensitive as this is, the president would have been told by someone that the inspector general has got a really damning report coming ous, mr. president. you should know about this. he shouldn't have to hear about it from the news media. pheiffer, it's just allegations without details, that's not an unusual thing at all. that said, let's bring in our panel. steve hayes, charles lane, opinion writer for the "washington post," and charles krauthammer. charles? >> the testimony from miller comes under the category of how stupid do you think we are? here is a guy who said that the irs openly discriminated against groups on the basis of their

politics, but the action was not a political action. it was a stab at efficiency. you've got to be a fool to say that and you have to be an idiot to believe it. it's simply a contradiction in terms. it's a matter of definition. it isn't even a matter of fact. so he starts off way, way out there and then he obviously was withholding the truth when he went before the committee before and said, well, i answered the questions, but he concealed from them the fact that this was going on. he knew it was a deep concern. he said nothing. let me just add the last bit of news that we got. how this was released by the irs, this is peculiar. i'm not even sure i can understand why. but they decide the ig report will come out. they decide a week ago to plant a question in a closed meeting of the so that lois lerner answers it and gives an answer,

assuming i think that it's going to leak out, but i'm not even sure i understand the logic of doing that. why not just issue a press release, say it, but to do it in a ridiculously devious way shows you an institution that is sort of given intrinsically to being untruthful and deceptive. >> bret: chuck, the i.g. said today that he told the counsel at the treasury department last year, june, about the investigation and so one wonders who knew what when. >> well, in addition to that, apparently the general counsel then kicked it up to the deputy secretary of treasury at that time, neil wollen, so apparently now he'll be called in and the theory is that maybe neil wollen would have told the white house. i don't know whether that's true or not. it was a tough -- i'm sure this guy is glad he's no longhorn the acting -- no longer the acting head of the irs, for just a few

more days 'cause he really had nothing good to say for himself there. this thing, it does show what happens when you have a rule like this 501 c 4 that is much more loophole than law and all these guys in the bureaucracy have lot of discretion to determine who gets the benefit of the loophole and in this case, that opens the door for them to abuse it now. how high up the orders went for them to abuse it is what we still don't know. one thing i think we should be all clear about is this law is screwy and ought to be repeeled. >> steve? >> that's fine. i'm happy to make a policy argument that we should simplify the tax code. i would be for that or eliminating the irs, which i think is more feasible than people say. so i think this matters for two reasons. one, the things that we've been talking about. who knew what when, when did woolen share this information? when did the white house actual lea find out? was the president ever notified? we're going to find that out. we'll just all have to settle in because i think this is going to take a lot of time and it will be a lot of a that kind of

questioning. pulling things out from reluctant witnesses. so that i think is sort of on the micro level. i think it's hard to overstate how damaging this is to the president. >> bret: and to the system overall. to that point, miller talks about customer service. take a listen here, and then a follow-up from congressman kelly from pennsylvania. >> we provided horrible customer service here. >> i will admit that, we did. >> horrible customer service. whether it was politically motivated or not is a very different. >> is there any limit to the scope of where you folks can go? whose sign do you put up in your front yard? this is a tax question? you don't think that's intimidating? it sure as hell is intimidating. and i don't know that i got any answers from you today. you can put anybody out of

business that you want any time you want and when the irs comes in, you're not allowed to make mistakes, you're not allowed to do one damn thing that doesn't come in compliance. if you do, you're held responsible right then. i think the american people have seen what's going on right now in their government. this is absolutely an overreach and this is an outrage for all america. >> bret: by the way, that ended in applause at that point. charles? >> customer service? bread shops had lousy customer service. this is choosing who gets the lousy customer service. it's not that everybody got it. it's the choice of who gets it that is the scandal. otherwise it would be a story about inefficient city, of which letter infinite numbers and it wouldn't even be a story. and the story that the laws are ambiguous, so if you want to apply criteria, it can be the size of the organization. it can be chronology. but everybody over the age of six would know that it's not the

ideology of the organization. there is no law in the world that would justify that. so it's not a question of ambiguity. it's a deliberate attack on people on the right and that is simply undeniable. >> i'm not denying that. what i'm saying is the vaguer the law, the easier it is to enforce it ideal logically. but to the point that this congressman was making very eloquently, most people don't like the irs and they're not crazy not to like the irs. the irs screws up a lot and i thought he was really on to something when he said, when you run -- they don't cut you any slack. >> bret: to that point, steve, the head of this program is now responsible for obamacare and the implementation of that. this seems like it could be a big deal. >> yes. i think it is a big deal and i think it's one of the reasons that the president is in so much trouble. on the one hand you got a president who is basically run, served as president the enter time, counting on people to

restore their faith in the federal government. and to restore power to the federal government. when you've got somebody like that taking us into this next step of the expansion of federal power, it's going to be a political nightmare for him. >> bret: a dagger for obamacare? >> it's a very tough problem for obamacare. >> it's going to be hard for the irs in the best of circumstances, operationally, to implement it and now with the loss of public faith, it's that much harder. >> a steak knife. >> bret: next up, the friday lightning round.

>> it seems that these cases that were reported this morning have been previously reported. we're not aware of new shipments

of these specific missiles. we're not aware of new shipments. >> it's an unfortunate decision that it will continue the suffering. >> general simply made it very clear that on the specific areas of the missiles, whatever else is involved with the russians does not help. it makes it more dangerous. >> bret: pentagon briefing about an hour and a half, two hours after the state briefing on specific missiles from russia to syria. we're back with the panel on the friday lightning round. charles? >> keystone cops. state department says nothing here. defense department says this is important and the russians ship high-tech missiles into syria and then the response of the defense department, this isn't helpful. is that all you can say? this is the russians stepping all over the so-called cooperation that we are getting. we just sent our secretary of

state into moscow to negotiate on this. this is a slap in the face. they're equipping openly, as we heard, the foreign minister of russia saying, of course we're sending arms into syria. which is under an embargo, and now they have a fleet of ships offshore. that used to be a mediterranean used to be an american lake. it's now a soviet lake. >> bret: the c.i.a. -- >> excuse me, a russian lake. >> bret: the c.i.a. -- >> he's exactly exactly as the soviets did. it's our colony and we're going to keep this issue. broadly speak. turning from that to benghazi, where does this head? talking is transition to benghazi where it has been a busy week. >> it's been busy week

kerfuffling, but no prescription of the talking points and charles is snickering, but i think they're right about that. >> i'm bursting. >> the e-mail even tatters the claims by jay carney and hillary clinton, among others, that the white house and the state foss 102 to the talking points. simply not true. i am surprised that some in the mainstream media are that they were lied to so directly about that more broadly, i think the next big question is how do we get the movie? where did the movie enter this discussion? it wasn't in any of the talking points it was mentioned in passing. not in any of the actual email discussions. in the nearly 100 pages of emails but in passing on

the first page and again on the last page as part of a subject line of an email. we need to know more how they settled on the story to sell the movie. >> bret: quickly, winners and losers? >> winner is putin. is he showing that he is in charge and the malcolm jenkins are completely irrelevant in syria. which is important. hezbollah, protecting hasan and he is actually hanging on. >> the loser, barack obama. i think even more eric holder. he has got a scandal on his hands with the a.p. dragnet. his answer is i have no idea. i recused myself i don't know where. it all happened while i was having a sandwich. >> bret: winners and losers? >> why winner is senator bob menendez of new jersey who as you may recall a little while ago seemed to be on the way out been with hookers. et cetera, et cetera. now it turns out that the fbi is entertaining the theory that he really was smeared by political enemies and that's what they're investigating. so he may actually wind up on top. my loser has got to be the

irs. you couldn't get any worse for them and then they have this brutal hearing on capitol hill today. they can't catch a break. >> bret: quickly steve? >> overcomplicating this. the winners is any republican thinking for running for irs 2014 and 2016. the loser clearly if ever there was a week he was a loser that is barack obama. >> bret: that is it for the panel. literal efforts to find clues about the 2016 presidential race. [ male announcer ] running out of steam? ♪ now you can give yourself a kick in the rear! v8 v-fusion plus energy. natural energy from green tea plus fruits and veggies. need a little kick? ooh! could've had a v8. in the juice aisle. this tree has deep roots, strong limbs... things are pched and not pinned.

nicely done. thboys love it. they are up there day and night. well that might be because y overlooked one thing... what? it looks into your neighbor's window. ohhh boy. hel-lo, mrs. kozlowski. boys? i'm gonna get the hose. [ dennis ] home insurance with do-it-yourself tips? that's allstate home insurance. great protection plus helpful advice to make life better. talk to an allstate agent... [ doorbell rings ] and let the good life in. here at the hutchison household. but one dark stormy evening... there were two things i could tell: she needed a good meal and a good family. so we gave her what our other cats love, purina cat chow complete. it's the best because it has something for all of our cats! and after a couple of weeks she was healthy, happy, and definitely part of the family. we're so lucky that lucy picked us. [ female announcer ] purina cat chow complete. always there for you.

well, dad, i spent my childhood living with monks learning the art of dealmaking. you've mastered monkey-style kung fu? no. priceline is different now. you don't even have to bid. master hahn taught you all that? oh, and he says to say (translated from cantonese) "you still owe him five bucks." your accent needs a little work. icaused by acid reflux disease, relieving heartburn, relief is at hand. for many, nexium provides 24-hour heartburn relief and may be available for just $18 a month. there is risk of bone fracture and low magnesium levels. side effects may include headache, abdominal pain, and diarrhea. if you have persistent diarrhea, contact your doctor right away. other serious stomach conditions may exist. don't take nexium if you take clopidogrel. relief is at hand for just $18 a month. talk to your doctor about nexium. what makes the sleep number store different? what makes the sleep you walk into a conventional mattress

store, it's really not about you. they say, "well, if you wanted a firm bed you can lie on one of those. we provide the exact individualization that your body needs. oh, yeah! wow. once you experience it, there's no going back. at the sleep number memorial day sale, save on the closeout of our classic special edition bed set. now just $1299-a savings of $600. only at the sleep number store. sleep number. comfort individualized.

>> bret: finally tonight, vice president joe biden is in rolling stone this month. the magazine, of course, not the band. some correspondents and anchors took his words in that article as a clear signal he is running. >> don't miss the interviews unmistakable message like this one quote i just had bluncht president. i spend an average of four to five days with him every single day. when i speak no one doubts that i speak to the president. like rally every meeting he has i'm in. [ laughter ] >> did you just read literally as light rally? because live tv if you did, that's awesome. i'm sorry, awe-so-me. >> oh, chuck, sorry. thanks for inviting your home tonight. that is it for this "special report," fair, balanced and unafraid.

make it a great weekend. >> harris: this is the fox report. tonight, the irs scandal, conservative groups targeted. now the agency's outgoing boss finds out what it is like to get grilled. who is responsible for targeting these individuals? >> i don't have names for you, mr. brady. >> this is wrong to abuse the tax system. why did you mislead congress and the american people. >> did i not mislead congress and the american people. >> how did you miss lead this committee. >> i did not mislead the committee. >> did the committee have a right to know yes or no? >> i answered all questions truth. >> harris: tonight, his explanation for what went wrong and why